What is a good interest rate on a car loan? What should I expect?
I don't have a credit score or maybe now a very low one since I just started trying to get credit. I don't know what to expect when trying to get a care loan. I have co-signer and the car loan would be for a ,000 car which I will be putting atleast ,000 down on. I was told by the lender that I would have a 0 monthly payment and the loan would be at 24% interest. (I am not taking that deal since I think it is horrible.) I was just curious if that was the types of deals I am going to get or can I do significantly better.
Also, what is the average interest rate on a car loan for someone with a fair credit score.
Oh, that quote was for three years. The lender wouldn't do it for more, but part of the reason I am getting an inexpensive automobile is because I don't want to be paying on it forever. I really want to pay it off early, so please give me any info you may have on prepayment penalties and how my situation will be affected by trying to get that type of loan.
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First this lender is a bad idea! If you put $3,000 down that would leave you financing $9,000 and at 24% for 3 years the payment should be $353.10. Lets assume the lender did not know about the down payment then they still quoted you wrong as it should be $470 for 3 years. So this lender is definitely not someone you should look to do business with.
As far as average interest rate that really all depends on your and your co-signers credit. If your co-signer has decent credit and yours is no to new credit You should not pay over 14-15% for a used vehicle. Now if your co-signers credit is bad then it could be a situation that makes the interest rate go way up. You need to find this out because if your co-signer has bad credit he may hurt you more than he is helping you.
Check with your bank and see if they have any first time buyer programs and with your down payment that could really be a good situation for you if your bank would offer financing.
Good Luck!
That’s an AWFUL interest rate, even for someone with no credit history and a co-signer. The dealer is ripping you off.
I’d look for something at least half of that, about 9-10% to start. A lot would depend on the make and model, and if it’s a new car and if you have steady income to make payments.
Your average interest rate should be between 10% to 14% no more than that…. 24% sounds like the lender is trying to rip you off so be careful i use to sell vehicles so i know how lenders are. I bought i truck about 4 years ago and got it for 6.5% now i have 0% for 72 months with a co-signer but you should pay no more than 14% and that is extremely high………
Take your $3000 and pay cash for a car.
Do not accept any predatory lenders offer for an almost criminal 24%. That is a complete rip off.
With $3000 and a car priced at $12000 with decent credit your payments should be no more than $300 a month.
Pay cash for a car, mend your credit and when your financial situation improves then go buy a better car. A person with good credit should be seeing interest rates less than 7% on new cars.
That is just disgusting. I’ve never in my life heard of someone getting such a bad offer. Don’t do business with that lender EVER. They are insulting you by even making that offer. My wife had a credit score of 640 and still got an offer of 8.9% on a new car worth $14,000. My credit score of 750 got us an offer of 5.7% for $19,000. Go through a bank or credit union for your loan. You could also try buying towards the end of the month. Dealers want to get that last sale out at the end of the month adn occasionally offer better deals.